Polymarket Seeks CFTC Approval to Re-launch Main Exchange for US Traders

Polymarket is reportedly seeking approval from the Commodity Futures Trading Commission (CFTC) to reintroduce its primary prediction market to US-based users. According to sources cited by Bloomberg, the company has been in discussions with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. The ban led to the relocation of Polymarket's main exchange overseas. However, the CFTC previously cleared a separate US-only platform operated by Polymarket in November, following the company's acquisition of a registered exchange. This platform has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports, or economic data, have faced increasing scrutiny from states that argue they operate as unlicensed gambling operations. The CFTC would need to vote to remove the US block, a process that may be simplified due to the current vacancy of four commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously argued that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The development comes after a soldier was accused of using a VPN to access Polymarket's international exchange, making over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.